MONTREAL, Canada, Nov. 26, 2010 /PRNewswire-FirstCall/ -- SAND Technology Inc. (BULLETIN BOARD: SNDTF) , an international provider of data management software and best practices, today reported a net loss for the year ended July 31, 2010 of $745,549 on revenues of $6,562,411 compared with a net loss of $1,191,695 on revenues of $7,049,237 for the year ended July 31, 2009. All figures are in Canadian dollars.
During fiscal year 2010, there was a significant reduction of 37.4% in our net loss from $1,191,695 in fiscal year 2009 to $745,549 in fiscal year 2010. Total revenues of $6,562,411 for fiscal year 2010 were lower by 6.9% compared to total revenues of $7,049,237 in fiscal year 2009. However, the Company reduced its operating expenses significantly in fiscal year 2010 and also took advantage of an enhanced research and development tax credits program offered by the Province of Quebec (Canada). Research and development costs, after deducting accrued tax credits, of $1,458,392 for fiscal 2010 were 25.6% lower than the previous year amount of $1,960,295. Selling, General and Administrative expenses of $4,224,677 for fiscal year 2010 were 3.4% lower than the previous year amount of $4,372,067. The foreign exchange loss of $80,978 for fiscal year 2010 was 40.0% lower than the previous year amount of $135,051. Interest expense of $295,941 for fiscal year 2010 was 5.6% lower than the previous year amount of $313,652. Sales were negatively impacted during fiscal year 2010 by the strengthening of the Canadian dollar against all 3 foreign currencies, the U.S. dollar, the U.K. pound and the Euro, in which the Company invoices its customers outside of Canada. Comparing the average rates of fiscal year 2010 and fiscal year 2009, the Canadian dollar increased against the U.S. dollar, the U.K. pound and the Euro by 12.1%, 12.0% and 9.8%, respectively. If average exchange rates in fiscal year 2010 had remained at the same levels as fiscal year 2009, revenues would have been higher by approximately $588,000, cost of sales and product support and operating expenses, before interest expense and foreign exchange, would have been higher by approximately $410,000 resulting in a decrease in the loss from operations by approximately $178,000, from $368,630 to approximately $191,000.
"SAND has made a number of radical changes designed to change the way we operate as a business. SAND's leading technology for data warehousing during this time had few competitors. In the last few years we have seen a number of new vendors enter the space and SAND was not ready from a sales and marketing perspective to compete effectively with them," explained Thomas M. O'Donnell, SAND's President and Chief Executive Officer. "Our technology has been at the forefront of the market for years but the market was not mature. This has changed and we have replaced the entire sales and marketing teams, the partner teams and re-organized ready to exploit this change in the market. It has required a lot of hard work and was not as smooth a transition as I would have hoped. I am convinced we have put all the right elements in place to take advantage of this change in the market. SAND's products are proven for advanced analytics and support extreme data mining, ad hoc analysis and on-line analytic processing. Tens of thousands of users use SAND to mine hundreds of terabytes of data and drive incredibly complex analytics. Our products remain market leading with features like in-database analytics, Text Analytics, and pattern analysis. I believe we will see significant positive change at SAND this year and build a revenue engine on top of the technological chassis we have been building for the last two decades and over 800 person years of product development."
About SAND Technology
SAND Technology provides advanced analytics database software for analyzing large amounts of extreme data on-demand while lowering TCO, leveraging existing infrastructure and improving operational performance.
SAND's software drives solutions for CRM analytics, and specialized applications for government, healthcare, financial services, telecommunications, retail, transportation, and other business sectors. SAND has achieved "Certified for SAP NetWeaver" status and SAND Nearline Integration Controller has achieved "Powered by SAP NetWeaver" status.
SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe.
SAND Technology, SAND CDBMS, Nucleus, N-Vector, and MPSO are registered trademarks, and SAND/DNA, SAND/DNA Access, SAND/DNA Analytics, SAND/DNA aCRM, SAND Analytic Server, SAND Searchable Archive, SAND Extensible Warehouse, and all related SAND-, SAND/DNA, and Nucleus-based marks and designs, are trademarks of SAND Technology Inc. Other trademarks remain the property of their respective owners.
Caution Concerning Forward-Looking Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of the United States Securities Act of 1933 and of the United States Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995 as "forward-looking information" under Canadian securities legislation (collectively, "forward-looking statement"). The forward-looking statements are intended to be subject to the safe harbour protection provided by these Acts. We have based these forward-looking statements on our current expectations and projections about future results, levels of activity, events, trends or plans. Such forward-looking statements are not guarantees and by their nature are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of SAND to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements included in this press release are based on current expectations and on information available to SAND on the date of this press release. For a more detailed discussion of these risks and uncertainties and other business risks, see SAND's current Annual Report and SAND's reports to the Securities and Exchange Commission (filed on EDGAR at http://www.sec.gov/) and the Canadian securities authorities (filed on SEDAR at http://www.sedar.com/). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. Except as required by applicable laws, we undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.
Financial Highlights
The audited Consolidated Financial Statements of the Company for fiscal year 2010 and the Notes thereto are presented in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). The financial information presented below is consistent with Canadian GAAP except where otherwise stated.
The following financial information is expressed in Canadian dollars and is derived from its consolidated financial statements which have been audited by our independent auditors, Raymond Chabot Grant Thornton L.L.P., for the fiscal years ended July 31, 2010, July 31, 2009 and July 31, 2008. The following financial information should be read in conjunction with Consolidated Financial Statements of the Company and Notes thereto for each of the years in the 3-year period ended July 31, 2010 of SAND Technology Inc. and the information included in the Annual Report of the Company.
Fiscal Year Ended July 31, -------------------------- Results of Operations 2010 2009 2008 ----------- ---- ---- ---- Revenue $6,562,411 $7,049,237 $6,998,472 Cost of sales and product support 1,194,674 1,396,224 1,470,215 --------- --------- --------- Gross profit 5,367,737 5,653,013 5,528,257 ----- ---- ---- Operating Expenses Research and development costs, net 1,458,392 1,960,295 1,971,813 Amortization of capital Assets and other assets 53,298 63,643 187,517 Selling, general and administrative 4,224,677 4,372,067 4,402,613 --------- 5,736,367 6,396,005 6,561,943 ----- ---- ---- Income (loss) from operations before the undernoted items (368,630) (742,992) (1,033,686) Foreign exchange loss 80,978 135,051 9,123 Interest expense 295,941 313,652 229,141 376,919 448,703 238,264 Net loss $(745,549) $(1,191,695) $(1,271,950) ========= =========== =========== Basic and diluted income (loss) per share $(0.05) $(0.08) $(0.09) ====== ====== ====== Basic and diluted weighted average number of common shares 15,467,702 14,318,189 14,318,189 ======== ======= ======= As at July 31, -------------- Financial Position 2010 2009 2008 ------------------ ---- ---- ---- Working Capital (deficiency) $(982,935) $(1,910,058) $(1,055,535) Total assets 2,117,443 2,740,326 2,803,032 Total liabilities 4,568,107 5,112,881 4,063,491 Shareholders' deficiency (2,450,664) (2,372,555) (1,260,459) Fiscal Year Ended July 31, -------------------------- Rates of Exchange 2010 2009 2008 ----------------- ---- ---- ---- At year end -U.S. dollar $1.0283 $1.0790 $1.0257 Average for the year -U.S. dollar 1.0491 1.1758 1.0071 At year end -U.K. pound 1.6169 1.8033 2.0312 Average for the year -U.K. pound 1.6511 1.8497 2.0135 At year end - Euro 1.3447 1.5406 1.5993 Average for the year -Euro 1.4491 1.5907 1.4987 Financial Highlights The same data, presented in conformity with U.S. GAAP, is shown below. Fiscal Year Ended July 31, -------------------------- Results of Operations 2010 2009 2008 --------------------- ---- ---- ---- Revenue $6,562,411 $7,049,237 $6,998,472 Cost of sales and product support 1,194,674 1,396,224 1,470,215 --------- --------- --------- Gross profit 5,367,737 5,653,013 5,528,257 ---- ---- ---- Operating Expenses Research and development costs, net 1,458,392 1,960,295 1,971,813 Amortization of capital assets and other assets 53,298 63,643 187,517 Selling, general and administrative 3,828,422 4,245,903 4,730,892 --------- 5,340,112 6,269,841 6,890,222 ---- ---- ---- Income (loss) from operations before the undernoted items 27,625 (616,828) (1,361,965) Foreign exchange loss 80,978 135,051 9,123 Interest expense 252,516 273,015 186,724 333,494 408,066 195,847 Net loss $(305,869) $(1,024,894) $(1,557,812) ========= =========== =========== Basic and diluted income (loss) per share $(0.02) $(0.07) $(0.11) ====== ====== ====== Basic and diluted weighted average number of common shares 15,467,702 14,318,189 14,318,189 ======= ======= ======= As at July 31, -------------- Financial Position 2010 2009 2008 ------------------ ---- ---- ---- Working Capital (deficiency) $(1,954,639) $(3,280,145) $(2,557,942) Total assets 2,117,443 2,740,326 2,803,032 Total liabilities 5,277,325 6,263,907 5,387,474 Shareholders' deficiency (3,159,882) (3,523,581) (2,584,442) Fiscal Year Ended July 31, -------------------------- Rates of Exchange 2010 2009 2008 ----------------- ---- ---- ---- At year end -U.S. dollar $1.0283 $1.0790 $1.0257 Average for the year -U.S. dollar 1.0491 1.1758 1.0071 At year end -U.K. pound 1.6169 1.8033 2.0312 Average for the year -U.K. pound 1.6511 1.8497 2.0135 At year end - Euro 1.3447 1.5406 1.5993 Average for the year -Euro 1.4491 1.5907 1.4987
SAND Technology Inc.
CONTACT: Media - North America, UK/ Western European Press,
German/Central European Press, Michael Pilcher, Chief Operating Officer, +44
779 675 7671, mike.pilcher@sand.com, or Investor Relations, Tony Giuliano,
Chief Financial Officer, +1-514-939-3477, tony.giuliano@sand.com, both of SAND
Technology Inc.
